Final answer:
The correct answer to the student's question is 'c) globalization.' It is the process that fuses different markets, cultures, and political systems through international trade, leading to an interdependent global economy. Globalization affects competition and resource flow worldwide.
Step-by-step explanation:
The worldwide interdependence of resource flows, product markets, and business competition is called globalization. This concept refers to the extensive process that integrates governments, cultures, and financial markets through international trade into a cohesive world market. Recent trends in globalization show expanding connections between people across various domains, such as economic, political, and cultural. It is a dynamic force that often starts with a motive like market expansion by corporations or improved access to healthcare by nonprofits, leading to a snowball effect of various global efforts. Despite the benefits, there are concerns about the influence of multinational corporations on political decisions and fear that globalization may lead to cultural homogenization or exploitation of vulnerable economies that depend on natural resource extraction.
The interconnectedness brought about by globalization is further strengthened by new communications and information technology, increasing competition for firms by exposing them to more international competitors. While it provides opportunities for market expansion and collaboration, it also poses threats to businesses that are unable to compete on a global scale.